Paperwork for Selling a House Without a Realtor and Why You Should

If you're contemplating selling a home without a realtor, you need to know what paperwork you'll need to close the sale. While it's not an easy task to complete, especially when you don't have real estate experience, it can save you a great deal of money.

Original Sales Contract

There’s a good chance that you bought the house you intend to sell, and you likely have the sales contract. The sales contract is the agreement between you and the previous owner of your home, and it stipulates the purchase terms.

The original sales contract informs prospective buyers about the previous owner of the house. It denotes the explicit terms and conditions when the seller transferred the property. It also shows the price and any disclosures about the state of the property before you bought it. While it's not a hard requirement, most buyers often request to see it.

Mortgage Statement

If you decide to sell your house before you clear the current mortgage, it helps to contact the lender and request a mortgage statement. This document denotes the payoff amount, which is often the money you need to pay to meet the mortgage terms, and it includes all the interests you owe.

While you can request this document before listing the home, you need to ask for an updated version right before closing.

Homeowners Insurance Records

It's always a good idea to furnish the buyer with your homeowners' insurance details. Besides helping them understand the property's claim history, the document enables the buyer to estimate the cost of insurance.

Additional Documents

While requirements vary by state, it's good to have the following documents:

·    Professional appraisal

·    Home repair records

·    HOA documents

·    Preliminary title report

·    Pre-inspection report

·    Deed

·    Tax forms

Why You Should Sell a House Without a Realtor

The most significant benefit of selling a house without a realtor is that you don't have to pay their commission. Ideally, most realtors ask for 6% of your home's sale price. The amount is split equally between the seller's agent and the buyer's agent, but when you eliminate a realtor from the sale process, you won't pay the 3% for the listing agent.

While this percentage may seem small, it can translate to massive amounts of money. For instance, if you sell a house for $400,000, you can save $12,000 by avoiding a realtor.

Selling a house without a realtor helps you ensure total control of the sale process. When you're in charge, you are at liberty to decide how to price, stage, market, and negotiate the sale. Your success depends on your level of knowledge in the real estate industry, but even when you're a newcomer, there are plenty of resources to guide you.

Endnote

Selling your home without a realtor can be a great way of maximizing profits. However, it's prudent to prepare early and be ready to do all the hard work to make the sale successful. If you need help with selling your house, reach out to a reputable company and make the process easier.